TEMPO Interactive, Jakarta: It is predicted that by the end of this year Jakarta Stock Exhange's Composite Share Index up will exceed the level of 2,050. According to Joshua Tanja, Research Head of UBS Securities Indonesia, blue chip shares continue mobilizing the index. Going beyond the level of 2,000 is easy. We even predict it will exceed the level of 2,050, he said in Jakarta yesterday (15/4).The sectors that are moving the index, said Joshua, include telecommunications, automotive, banking and mining. Jonathan Anderson, UBS Securities' senior Economist for the Asia-Pacific, said non-metal commodity prices, including copper and nickel, will rise. Demand, especially from China and India, is still high, he said. Phillip Wyatt, UBS's Economist for Southeast Asia, said conservatively real investment in Indonesia will grow between 20 and 25 percent in the next two years. This year, investment growth will reach 10 percent. This year's investment is triggered by property, infrastructure and natural resources, said Phillip.The central bank's interest rate, he said, will probably go down to 8.5 percent, caused by the decrease of inflation and economic growth. Phillip went on to say that the Rupiah exchange rate would be stronger along with the weakening US Dollar's position in Asia.Desy Pakpahan
